Etlingera, Golden Pharos in agarwood product venture


ETLINGERA Sdn Bhd, a Malaysian Technology Development Corp’s (MTDC) unit, is targeting RM1.6 million in sales over the next 18 months through its collaboration with Golden Pharos Bhd’s subsidiary, Permint Plywood Sdn Bhd.

Through the partnership, Permint Plywood will supply 480 mature karas plants, while Etlingera is responsible for inoculation, harvesting, transportation, documentation, packaging and product sales.

“Based on our agreement, the profit distribution will be 50-50 between both parties,” Etlingera CEO Suhaimi Samsudin told reporters last Friday during the signing ceremony in Kuala Lumpur.

Suhaimi added that inoculum etlingera, a Universiti Putra Malaysia research product, will be used for this project.

It is able to produce a high quality of agarwood oil scent that could last for more than 20 hours.

The technology used is based on natural microorganism that reacts to resin and produces good quality of agarwood oil.

The technology is widely used in Indonesia, Thailand, Cambodia and Laos and the agarwood oil now has good demand from markets like Oman, Qatar, Saudi Arabia, Kuwait and Bahrain.

Golden Pharos CEO Datuk Ahmad Nadzarudin Abdul Razak said the collaboration is a long-term plan aiming for a lucrative return due to higher agarwood oil demand across the world.

The company has 100,0000 karas plants at a 100-acre (40.5ha) land in Ladang Karas in Merchang, Terengganu.

Ahmad Nadzarudin said the agarwood could be processed to produce agarwood oil, fragrances, beads, decorative materials and tea.

To date, the market value of one litre of agarwood oil is RM80,000 and the global market is estimated to be in the range of US$6 billion (RM25.02 billion) to US$8 billion per annum.

“We will always support local research products, and we will play our role in identifying technologies or products for these companies as we believe it will give a positive impact to our economy.

“The collaboration marks another milestone for MTDC as we provide consulting services and platform for entrepreneurs to share and sell their products to a larger target market,” said MTDC CEO Datuk Norhalim Yunus (picture).

Established in 1992, MTDC is an agency under the Ministry of Energy, Science, Technology, Environment and Climate Change with an objective to be the key player in technology commercialisation and promoting the adoption of technologies by local companies.

MTDC undertakes fund management, incubation, advisory and nurturing services, and it is wholly owned by strategic investment fund, Khazanah Nasional Bhd.

Golden Pharos ended the trading last week at 19.5 sen, valuing the company at RM26.7 million.